9. Project Environment.

Kohli (2006), Project environment is the setting in terms of physical, social, human, cultural
or otherwise in which a project is undertaken. It includes internal and external risk-prone
environment, which causes frequent distortions.

(a) Internal Environment:

i. Corporate goal and objectives – This has to do with the aim of setting up the project. What
does the project owner intend to realise from his project? How does he intend to realise this?

ii. Stakeholders‘ interest – Project manager should identify the shareholders‘ interest and his
ability to affect its successful outcome. The project manager must work with stakeholders in
order to achieve best results especially in a highly technical and complex environment such
as those involving modern day construction projects (Widemen, 1990).

iii. Resource problems – Resource allocation and levelling could bring their own problems in
the environment and must be handled professionally.

iv. Human resources management – This has been treated in details under ―built
environment.‖

(b) External Environment:

i. Cultural and social – The project team needs to understand how the project affects the
people and how the people affect the project. This requires studying aspects of the economic,
demographic, educational, ethical, religious and other characteristics of the people whom the
project affects or who may have interest in the project.’’’’’’’’’’’’’’’’’’’’’’
ii. Political – Project manager needs to be aware of project boundaries which could be
regional, national and their local laws and customs as well as political climate that could
affect the project.
iii. Legal factors.
iv. Physical – Some team members must be knowledgeable about the local ecology and
physical geography that could affect the project or be affected by the project.
v. Economic environment – Project manager needs to be aware of the economic situation
where he/she is coordinating the project and how stable is the price of inputs.
vi. Financial factors.
vii. Competitive environment – Competition can be in form of labour, resources and market
where project outputs are to be consumed. Competiton can be caused by presence of many
similar projects. E.g. private and public schools locating in same vicinity.
viii. Technological environment – This helps in simplifying the accomplishment of project
activities. Various tools have been developed and have changed the project‘s environment
tremendously, e.g. cell phones, computer and other machines, which have led to effective
storage and dissemination of information and increased productivity (including reduction of
time schedule). Wrong choice of technology may lead to project failure. E.g. Ajaokuta Steel
Company. It may also lead to project manager manipulating physical, social and competitive
environment of the project (Nickel, McHugh and McHugh, 2005). E.g. sawing of timber with
manual labour rather than electric saw (Ajaokuta Steel Company with outdated machinery).
ix. Global environment – How does global environment affect the project? Labour is more
mobile now; tariff barriers are virtually falling off, economies of scale have effects on prices,
quality and service delivery.
(c) Internal and External Environment and Construction Projects
Internal and external environments have inherent uncertainties and are risk-prone.’

Characteristics/Uncertainties associated with construction projects:

i. Details of work may not be precisely defined.
ii. Scope of work gets modified during execution.
iii. Nature of work varies from job to job.
iv. Sites of works are located in remote areas.
v. Places of works are spread out.
vi. Resource requirements and organization of works differ with each task.
vii. Investments involved are large and the decisions entail risks.
viii. Performance in sensitive to unexplored site geology, uncertain weather and foreseen
natural calamities.
ix. Rapidly changing technology, fast moving economic conditions and susceptible
environments add new dimensions to the complex nature of construction projects. The
success of a project depends on the management of these risk-prone changing environments
within the framework of project goal.

10. Human Resources and Project Management.

(a) Meaning of Human Resources:
Different authors have defined human resources in different ways:
Brittel, et al (1989) described human resource management as the management function that
is concerned with obtaining and maintaining employee workforce that is most appropriate in
size and quality for a business‘ internal organizational structure.
Gatewood, et al (1995) noted that human resource management includes activities that first
forecast the number and types of employees an organization will need and then find and
develop employees with necessary skills.
Heneman, et al (1989) described it as management of various activities designed to enhance
the effectiveness of an organization‘s workforce in achieving organizational goal.
Nickels, et al (2005) explained human resource management as the process of determining
human resource needs and then recruiting, selecting, developing, motivating, evaluating,
compensating and scheduling employees to achieve organizational goals.
(b) Human Resources Functions:
i. Employment: This comprises recruitment, selection, induction, placement of human beings
of different categories into the organization. These are the initial processes about employees.
The latter stages would comprise the following: monitoring and evaluation, promotion (or
demotion), transfers and separation, wages and salary administration, health and safety,
labour relations, training and development. Other
important areas of human resources include human resources planning, job analysis and job
description.

ii. Recruitment: This is the process of attracting qualified job applicants to fill certain
vacancies that have arisen in an organization. The aim of recruitment process is to develop
and maintain a reservoir of manpower resources upon which an organization can draw from
when employment need arises. Recruitment process ends at sourcing applications from
prospective employees. Sources of recruitment include internet, newspapers, from higher
institutions, employment agencies or professional bodies.

iii. Selection: This is the process of gathering information about applicants for a position and
then using it to choose the most appropriate applicant. The steps used in selection include
applications for employment, tests, interviews, references and medical and physical
examinations.

iv. Induction and Orientation: After selection of new employees, there is an induction and
orientation programme to get them introduced to the values, policies and general personnel
rules of the organization.

v. Placement: New employee is posted to a department of the organization.

vi. Training and Development:
Training – Training is the process by which the members of organization are taught to
acquire knowledge and skills required to perform effectively the job at hand. Development –
This aims at adding to the skills of workers, improving their general knowledge and
moderating their attitudes. This is targeted at future jobs and
challenges.

vii. Manpower Development: Also known as human resource planning, it is a prerecruitment

activity and can be defined as the process that determines the human resources requirement of
an organization in order to achieve its strategic goal. It ensures that personnel requirements of
an organization are identified and plans put in place for meeting those requirements.

Objectives of human resource planning include:

▪ To ensure optimum use of manpower.
▪ To forecast future requirements of manpower.
▪ To ensure necessary manpower is always available when required.
▪ To determine efficient recruitment levels.
▪ To determine efficient training.
▪ To provide basis for development programmes.
▪ To anticipate redundancies.
Factors affecting Manpower Planning:
▪ Working hours.
▪ Number of shifts.
▪ Nature of production.
▪ Performance or efficiency of staff.

(c) Relevance of Job Analysis in Human Resource Management

Meaning of Job Analysis: It is a process of extracting systematic information about jobs,
including the nature of job performed, equipment used, working conditions and the position
of the job within the organization (Arnold, et al, 1995). It is the critical study of a job in order
to know what the job in terms of tasks, duties and responsibilities, who is to do
the job, using his knowledge, skill, experience and energy, what is needed to do in the job in
terms of tools and equipment and what is going to get for doing the job in terms of
remuneration ad benefits.
Job analysis has two components, namely: job description and job (or person) specification.

i. Job Description – This seeks to define what the job is, purpose for the job, what duties and
what tasks and responsibilities are attached to the job. Also, it seeks to define the position of
the job within the organizational structure and how the job relates to the environment.
ii. Job or Person Specification – This defines the attributes and qualities of the person suitable
for the job. It looks at educational qualifications, experience, technical skills, personality and
temperament and any other special requirement needed to execute this position.
Usefulness of Job Analysis: Job analysis is used in every aspect of employment processes,
namely: recruitment, selection, placement, training and development, wages and salary,
health and safety, manpower planning, skill, identification, appraisal and promotion, etc.

(d) Usefulness of Human Resources to Project Management:

A project manager should be able to know the processes of employing his project staff, how
to remunerate them and be able to keep them in the project. He should also be able to resolve
conflicts which arise from staff coming from different backgrounds.

(e) Conflicts in Project Environment:

Conflict is defined as the behaviour of an individual, a group or an organization which
impedes or restricts, at least temporarily, another party from attaining its desired goal. It is a
psychological state of mind and emanates from behavioural differences. It is capable of
disrupting, delaying and truncating a project, if not maturely handled.

Causes of Conflicts in a Project Environment

▪ Project setting is multidisciplinary and the different backgrounds of participants [lay,
sometimes, negative roles in the system.
▪ Project is also intertribal and international. Different tribal and national behaviour can
create problem.
▪ Inexperience project manager may create problems by his actions of favouritism, not
carrying everyone along, not being firm on the rules of the project.

Conflict Avoidance Ab Initio

▪ In order to avoid future conflicts, certain key conditions must be put in place at the
beginning:
▪ There must be laid down rules on how to work and staff are bound to respect them.
▪ Penalties must have been spelt out.
▪ Project manager must be firm, fair, not taking sides.
▪ Among others, project manager have integrity, passion, competence, patience, charisma,
boldness, and must be a team builder, a communicator and trouble-shooter.

Steps in Handling Conflicts

▪ Identify problem and determine the basic reasons for its existence.
▪ Approach problem as an obstacle that must be overcome.
▪ Carry everyone along when conflict is being settled.
▪ Let each party understand the negative effects of conflicts.
▪ Depersonalise the problem. Do not focus on individuals or groups involved.
▪ Take action – study the problem very, very well, collect all available information, develop
situational approach or methodology and set appropriate atmosphere for resolution.